Chief Executive Officer of MTN Group Ltd, Sifiso Dabengwa has resigned from his position following a $5.2 billion fine by Nigerian regulators related to unregistered subscribers.
MTN’s Non-Executive Chairman, Phuthuma Nhleko has agreed to act as executive chairman for a maximum period of six months while a successor to Dabengwa is identified. Dabengwa was said to have resigned over the weekend after consultation with the board.
In his letter of resignation, “Due to the most unfortunate prevailing circumstances occurring at MTN Nigeria, I, in the interest of the company and its shareholders, have tendered my resignation with immediate effect,”.
MTN has until Nov. 16 to pay the Nigeria penalty, which relates to the timing of the disconnection of 5.1 million subscribers and is based on a charge of 200,000 naira for each unregistered customer. The company’s shares lost almost a quarter of their value following the disclosure of the fine, before a partial recovery.
Acting Executive Chairman, Nhleko in his statement, said, “I proactively deal with the Nigerian regulator and will continue to work with them in addressing the issues around unregistered subscribers as a matter of urgency,”.
MTN will continue to inform shareholders of any material engagements with the Nigerian authorities, the company said.